Pettis: China and the History of US Growth Models
Yves here. This is an important piece, in that it bucks conventional wisdom about growth and economic development in several ways.
Read more...Author Archives: Yves Smith
Should Bethany McLean Be Bothered by the Government Lawsuit Against S&P?
Bethany McLean just released a piece at Reuters which presents a good overview of the Department of Justice case against rating agency Standard and Poor’s for its conduct in rating residential mortgage backed securities and CDOs.* The high level description of the case, in particular, why the government used FIRREA as its cause of action, is helpful.
I have mixed feeling about taking issue with McLean, since she generally does a fine job of reporting and analysis, but there were some things about her piece that were so surprising that I thought they really needed to be discussed.
Read more...Elizabeth Warren Makes Promising Start in Senate Banking Committee Hearing
The progressive blogosphere seems pleased with Elizabeth Warren’s initial foray in the Senate Banking Committee.
Read more...Links 2/14/13
NC Crowdsourcing! Whither the Deficit Cliffhanger?
I’m obviously removed from the action, but I’m surprised at the complacency in DC and in the markets over the fact that the sequester is a comin’ soon. Next week Congress is out of session, and the media messaging from both sides at this point lacks the sense of urgency (in particular, front page reports of intense pow-wows) that I’d expect if a deal were to be done by the sequester deadline of early March.
So I have these questions for the NC commentariat:
Read more...Let’s Stop Calling Countries “Markets”
Yves here. This is a pet topic of mine. Participants in public policy debates are often insensitive to how much ground they cede when they embrace the nomenclature used by their opponents. My personal bete noire is “free markets” which is actually an oxymoron. Another is “entitlements” which is code for “welfare”. Why don’t people who favor programs like Social Security call them “social insurance’? Or “economic stabilizers”?
Read more...OCC Compounds Botched Foreclosure Review Process with Barmy Plan for Distributing Peanuts
The OCC is bravely trying to spin the horrorshow of its botched foreclosure reviews as some sort of positive outcome. It is apparently now trying to present its dereliction of duty in figuring out how to compensate borrowers as no big deal.
Read more...Links 2/13/12
Yes, Virginia, the Rich Continue to Get Richer: the Top 1% Got 121% of Income Gains Since 2009
Yes, sports fans, you read that headline correctly. The top 1% has captured all of the income gains since 2009 and then some, roaring ahead while the rest of the population slipped behind.
Read more...Yanis Varoufakis: Are Ireland and Portugal out of the Woods? (Updated)
By Yanis Varoufakis, Professor of Economics at the University of Athens. Cross posted from his blog
Ireland and Portugal have, recently, tested the water of the money markets with some success. But does this mean that they are out of the woods?
Read more...Obama Retrades Broken First Term Campaign Minimum Wage Promise in State of the Union Address
It takes a lot of chutzpah for Obama to recycle a watered-down version of a 2008 campaign commitment and present it as his brightest, shiniest promise in the State of the Union address laying out his second term priorities.
Read more...Links 2/12/13
Dave Dayen on How the CFPB Punted on Servicer Reform
I know a lot of readers miss Dave Dayen, who had a solid following at Firedoglake and among other things, covered the mortgage beat ably and energetically. He’s apparently been busy reporting, and just published a story in Washington Monthly on how the mortgage standards launched by the Consumer Financial Protection Bureau fall well short of what is necessary.
Read more...Philip Pilkington: Of Madness and Microfoundationsm – Rational Agents, Schizophrenia and a Noble Attempt by One Noah Smith to Break Through the Mirror
By Philip Pilkington, a writer and research assistant at Kingston University in London. You can follow him on Twitter @pilkingtonphil
If I were to put forward to you that we can learn as much if not more about human cognition, epistemology and methodology from the clinically insane as from our philosophers would you think me to be engaging in hyperbole, pseudo-intellectual claptrap and pretentious avant-garde nonsense? Perhaps you would, but I maintain that this is perfectly true and in what follows I hope to show it.
Read more...Bank of America Foreclosure Reviews: Why the OCC Overlooked “Independent” Reviewer Promontory’s Keystone Cops Act (Part VB)
This post continues our discussion of the role of “independent” foreclosure review consultant Promontory Financial Group. Here we focus on what happened, or more important, didn’t happen in Promontory’s conduct of the reviews, and how that contrasts with the staggering fees the firm is widely believed to have earned.
Read more...